The ongoing Covid-19 crisis means the profits outlook for UK plc remains packed with risk. But the public health emergency hasn’t discouraged me from continuing to invest in my Stocks and Shares ISA. Here’s one UK share and a US share I think could make me a lot of money all the way through to 2031.
Life in the fast lane
With the charge towards electric vehicles (EVs) gathering pace, I think buying stocks involved in the building and the running of these low-carbon carriages is a great idea. Ford is the latest major motor manufacturer to make a major stand on the issue. It claims that all of its new vehicles sold in Europe will offer an all-electric or hybrid option by mid-2026. And by 2030, it reckons all of its cars will be electric only.
I believe Fisker (NYSE: FSR) is another great US share to buy to ride the green vehicle phenomenon. The carmaker claims that its Ocean vehicle will be “the world’s most sustainable vehicle” when it launches next year. Critically too, the company’s first mass-produced EV will be a sports utility vehicle (SUV). This is the fastest-growing segment of the new car market. And Statista predicts a staggering 51m SUVs will be sold in 2023, up from the 26.7m which rolled out of the world’s showrooms in 2023.
Fisker, of course, carries more risk than established carmakers which have long track records of building for the masses. The business is expected to remain loss-making over the next couple of years at least. And production problems could delay the US share turning a profit for years to come.
There’s also huge competition from electric-only manufacturers such as Tesla as well as from the huge investment that major industry players like Ford are making in EVs. There’s also the threat that hydrogen-powered vehicles could eventually overtake electric as the planet’s most popular version of these green machines.
A green UK share
Getting exposure to the EV market isn’t the only green theme I think could make stock investors big money in the future. The gradual move away from fossil fuels and towards greener forms of electricity provides Greencoat UK Wind (LSE: UKW) with terrific profits opportunities. As the name suggests, this UK share operates onshore and offshore wind farms across Britain.
2020 was a blockbuster year for green energy. For the first time in history, more electricity was generated from renewable sources than from coal, crude oil and natural gas, according to Drax Electric Insights. And it was a particularly big year for producers of wind power. Over the course of the 12 months, this renewable source accounted for a quarter of all of Britain’s power.
Though green energy demand is set to keep growing, it might not all be plain sailing for Greencoat UK Wind. The company could experience significant problems with the development of projects that could damage expected income and incur extra costs. That said, I still think this UK share is still a top ISA buy today.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Greencoat UK Wind. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.